Podcast | Stock picks of the day: Nifty must surpass 10,700 for rally towards 11,000

has surpassed important resistance of 25,900 levels and closed above the same which is a positive development

The overall set up at the current juncture seems to be positive. However, Nifty continues to trade between a narrow trading band of 10,450-10,650. The 200-DEMA resistance zone further on is around the 10,700 levels.

For any kind of meaningful upswing to begin, the Nifty has to surpass the crucial mentioned resistance zone. Post that, we expect the index to rally towards the 11,100 levels in the near term. On the downside, longs should be protected with stop loss around 10,300 levels.

Bank Nifty has already broken out from a classic Cup and Handle pattern on the hourly chart and it has also managed to hold above the same. The index has surpassed important resistance of 25,900 levels and closed above the same which is a positive development. If the momentum prolongs, Bank Nifty is expected to move higher towards potential target of 26,800 levels. Protective stop loss should be placed around 25,800 levels.

Following is a list of stocks that could deliver 6-9% returns:

Maruti Suzuki : Buy | Target: Rs 7,950, Stop loss: Rs 7,250 Return: 6.5%

The stock has been consolidating for the past five weeks and has finally broken out from a classic inverse head and shoulder pattern on the daily chart. The price outburst has been accompanied with smart uptick in traded volumes.

Apart from this on the monthly chart Maruti is also forming a bullish engulfing pattern. If the current momentum extends then we Maruti to move higher towards its potential target of Rs 7950 in near term.

Nestle India: Buy | Target: Rs 11,170 | Stop loss: Rs 10,075 | Return: 7%

The stock has been witnessing accumulation for the past two weeks and after a phase of consolidation nestle has broken out from a rounding bottom pattern on the daily chart.

Rising volumes and positive crossovers on the other momentum oscillators indicate that current momentum is likely to get extended forward. In addition, Nestle has also surpassed its short term moving averages.

Titan Company: Buy | Target: Rs 1,005 | Stop loss: Rs 879 | Return: 9%

The stock been trading with solid momentum for the past four weeks and has finally broken out from a declining channel pattern on the weekly chart. The momentum has been so strong that it is not even breaching below its 5-DEMA too which indicates that the momentum is very strong.

In addition, there has been a simultaneous breakout on the relative strength index as well, which, further accentuates our bullish stance on the stock.

Disclaimer:- The views and investment tips expressed by investment experts are their own. Ripples Advisory advises users to check with certified experts before taking any investment decisions.

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